Gala Games, the ambitious blockchain gaming ecosystem behind hits like Mirandus and Echoes of Empire, now faces internal turmoil as co-founder Eric Schiermeyer files suit against fellow co-founder Wright Thurston.
Schiermeyer alleges Thurston misappropriated a staggering 8.6 billion $GALA tokens, destabilizing leadership at the prominent Web3 gaming startup. The dramatic legal dispute casts shadows over Gala’s future.
Let’s analyze the implications of this founder fallout on Gala Games’ reputation and token value, already reeling from recent controversies. Can Gala recover and deliver on its promise amidst the internal chaos?
Lawsuit Alleges Gala Co-Founder Secretly Stole Billions in $GALA Crypto
In legal documents filed in a Utah court, Gala Games co-founder and president Eric Schiermeyer accused colleague Wright Thurston of stealing over 8.6 billion $GALA tokens owned by the company.
The suit alleges Thurston executed an elaborate series of transactions via his firm, True North, to illicitly transfer and obfuscate the movement of the tokens before Gala detected the theft.
Schiermeyer seeks restitution of the stolen crypto assets, the removal of Thurston from Gala’s board, and additional financial damages through the lawsuit.
If accurate, the monumental theft by a founding director threatens stability at the Gala Games’ helm. The conflict follows other recent controversies for the ambitious startup.
Gala Faces Criticism Over Recent NFT Drop’s Structure and Profit Sharing
While fighting internal fires, Gala Games drew public criticism in July over its collaboration with crypto project Orbs. Blockchain analysis by ZachXBT argued the Orbs Genesis NFT drop was designed to enable Gala to reap excessive profits rather than fairly rewarding Orbs’ community.
This galvanized resentment already brewing over Gala appeared to favor short-term financial gain over its community roots. The analysis further alleged Gala had already covertly dumped its Orbs holdings before launch, indicating a pump-and-dump strategy.
Thurston Has a History of Regulatory Actions Tied to Crypto Ventures
For Gala Games co-founder Thurston, the alleged token theft adds to a checkered track record of crypto projects facing legal woes. For example, Green Boxes, a previous sustainability-focused crypto initiative Thurston participated in, underwent an SEC investigation regarding potentially unregistered securities activities. Thurston also has ties to other blockchain startups that ultimately collapsed and triggered lawsuits, including Aftermath Islands and Joyride. This history does not aid his defense of the latest allegations.
Internal Woes Reflect in Falling $GALA Token Price Amid Crypto Winter
The bitter Gala Games founder dispute comes at an already challenging time given 2022’s crypto price carnage. Unsurprisingly, the reports of internal dysfunction and alleged theft corresponded with the $GALA token shedding nearly 13% of its value over the 24 hours since the lawsuit filing.
Gala already faces token price woes consistent with the broader crypto downturn. But news of a crisis in leadership exacerbates market fears. While Gala vouches the lawsuit will not impact development or products, the token decline indicates decreased confidence. More uncertainty likely lies ahead.
Gala Must Quickly Right the Ship to Maintain Progress
With its ambitious roadmap and roster of blockchain titles, Gala Games hoped to lead the web3 gaming revolution. But between the lawsuit’s alleged misconduct, the token crash, and community dissent, Gala confronts internal disarray, threatening its promising vision.
Trust and cohesion ultimately form the bedrock of sustainable ecosystems. Gala now faces the hard work of rebuilding both its organization and community.
The project maintains immense potential, but executing its grand plans requires overcoming the current tumult. As Web3 gaming evolves, fierce competition also surrounds Gala. The road ahead will test its resilience. But should Gala realign under reformed leadership and a laser focus on delivering value, the promising building blocks will flourish again. It’s in stakeholders’ shared interest to move positively forward.
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